NTPC and Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL) on Monday formed a joint venture for the Chhabra Thermal Power Plant.

What Happened: The joint venture will enable both NTPC and RVUNL to own and operate the Chhabra power plant, which currently boasts a capacity of 2,320 megawatts, NTPC said in a press release. Additionally, the firms will also explore opportunities for capacity expansion.

The disclosure also highlighted that both entities will have equal rights to appoint directors, with the management control resting with NTPC. The power giant will also appoint the CEO, CFO and chief operating officer (COO).

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This joint venture comes on the heels of NTPC’s recent strategic moves. The company inked a strategic partnership with the Oil and Natural Gas Corporation (ONGC) on November 4 to boost India’s renewable energy sector. They planned to establish a 50:50 joint venture company through their green energy subsidiaries, NTPC Green Energy and ONGC Green Energy.

The partnership will explore various aspects of the renewable energy value chain, including offshore wind energy, hydrogen production and other green energy initiatives. It will also explore opportunities to acquire renewable energy assets and consider participating in upcoming offshore wind tenders in Tamil Nadu and Gujarat.

This comes after NTPC Green Energy received the Indian markets regulator's approval for an IPO last month. It aims to raise ₹10,000 crore through the IPO.

Price Action: Shares of NTPC were trading flat at ₹400 apiece on Tuesday morning.

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